Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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Mitchell777 wrote: ↑
Tue Sep 26, 2017 5:30 pm
Thank you. I'm going to print this. I've been struggling with ROTH conversions. I have no heirs so everything goes to charity after I'm gone. It's doubtful I'll run out of money but in today's world, who knows. So, I'm leaning toward not doing the conversions but I'm not certain. I know I'll get caught in IRMAA at age 70 (RMD and SS begin), maybe before. Starting SS or RMD prior to 70 may be an option as I review in more detail.
In this case, giving everything to charity makes your decision more obvious in that conversion doesn't make sense for you. Why give a charity a Roth IRA when you can give them every single dollar of your pre-tax accounts? Neither of you will have to pay taxes in that case.
But if you have any relatives at all that you want to remember, the Roth should go to them. Those are the most "valuable" dollars one can have since they are able to grow tax-free as long as they stay in the Roth.
Who knows. Maybe you'll meet a caring nurse in a nursing home or someone who saves your life that you'll want to remember. You have lots of options in your estate planning.
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penumbra wrote: ↑
Fri May 12, 2017 3:36 pm
We're in the 39.5% bracket, plus 11% or so California tax. Will be in this bracket indefinitely. Same bracket as when I retired. Have looked at all the ways to finesse this lower; not gonna happen. This largely from accumulating a large 401k, with its attendant rmd's.
I hope to have your problem....
I've thought about schemes (not illegal AFAIK) to shift money between accounts. For example, short SPY (or buy SDS) in 401k while buying VTI in Roth or taxable, so if the market goes up 20%, you lose money in the 401k reducing RMDs but getting capital gains in taxable that you can control when to withdraw. But it's full of holes, including what if the market tanks 30%? And you waste a bunch of margin and opportunity cost.
https://www.bogleheads.org/wiki/Placing ... ed_account
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